Bombardier Case Study Essay example

1588 Words Dec 18th, 2012 7 Pages
1. Introduction: Problem Statement
The announcement of an outdated CRJ1000 instead of the highly anticipated CSeries came to a shock to analysts and shareholders. It has now become unclear to investors what Bombardier’s future strategy will be within the aerospace industry.

2. External analysis
Technological: Due to the competitive nature of the industry, it is important to stay ahead of the pact in term of technology; continuously improving energy efficiency of the carriers.

Economic: The industry’s performance is highly tied in with the economy. A weak economy will mean weak sales.

Industry analysis: Porter’s five forces model
Bombardier Aerospace’s industry would be most clearly defined as the airline industry. *
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Corporate Level: Business Growth: Internal growth Vertical Integration: Strategic Partnerships with their suppliers Diversification: Bombardier Transport International Expansion: Global

* As a conclusion to the internal analysis, I expect a brief summary for the strengths and weakness of the firm

4. Alternatives:
You need to generate mutually exclusive alternatives that address the problem facing the firm. Try to integrate the findings from the external and internal analysis to suggest specific alternatives. The alternatives should be at the strategic level and you can use these levels as alternatives.

* Business-level strategies: staying in the same business and grow by internal growth, alliances, or mergers & acquisitions. The changes will be for the business level strategies.

* Corporate-level strategies: diversifying to different industries (related: upstream or downstream; or unrelated to totally different businesses) diversification can also be achieved by internal growth, alliances, or mergers & acquisitions. * They should merge with one of their suppliers. The decision on which supplier to overtake should be made based on the percentage cost of the plane. This will help reduce costs and ensure a competitively priced plane in order to continue to be the leader of the industry. This will help with their current problems in operations. Furthermore, they could also further

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